Income-tax law | Appeals and revision

Section 266 of the Income-tax Act, 1961: Execution for Costs Awarded by the Supreme Court

Section 266 provides a route for executing an order of the Supreme Court awarding costs in an income-tax matter. The High Court may transmit the order to a subordinate court for execution when a petition is made.

Legislative update: Section 266 of the Income-tax Act, 1961 corresponds to Section 370 of the Income-tax Act, 2025, which took effect on 1 April 2026. The older provision remains relevant where the repeal and savings rules preserve its application to earlier proceedings.

Statutory text of Section 266

The High Court may, on petition made for the execution of the order of the Supreme Court in respect of any costs awarded thereby, transmit the order for execution to any court subordinate to the High Court.

Meaning and scope of Section 266

Costs awarded by the Supreme Court means an amount that the Supreme Court directs a party to pay towards costs in the proceedings. The section concerns enforcement of that costs order; it does not itself determine the amount of costs or create an independent income-tax assessment.

Execution means the legal process used to enforce a court order. Under Section 266, a party seeking execution may petition the High Court, which has discretion to transmit the Supreme Court order to a court subordinate to it.

How execution of a costs order works

  1. Identify the order: Obtain the Supreme Court order containing the award of costs and verify its operative directions.
  2. Present a petition: Apply to the relevant High Court seeking execution or transmission of the costs order.
  3. High Court consideration: The High Court may transmit the order to a subordinate court for execution. Transmission is discretionary, not automatic.
  4. Enforcement: The receiving court deals with execution according to applicable procedural law and the terms of the order.

The precise filing requirements, jurisdiction, limitation questions and available enforcement measures depend on the order, applicable court rules and procedural law. Section 266 itself does not specify a separate filing deadline or prescribe a particular execution form.

Corresponding Section 370 of the Income-tax Act, 2025

Section 370 of the Income-tax Act, 2025 carries forward the same mechanism: the High Court may, on a petition for execution of Supreme Court-awarded costs, transmit the order to a subordinate court. The official correspondence table identifies Section 370 as the successor to Section 266.

For the operative provision and any transitional issue, consult the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Income-tax Act, 1961 consolidated text.

Section 261 addresses appeals to the Supreme Court; Section 262 deals with hearing and costs in Supreme Court appeals; and Section 265 addresses tax payment notwithstanding specified references or appeals. These provisions serve different purposes from the execution mechanism in Section 266.

Frequently asked questions

Can the High Court execute the Supreme Court costs order itself?

Section 266 expressly empowers the High Court to transmit the order to a subordinate court for execution upon petition. The proper procedure in an individual matter depends on applicable court rules and the order.

Is transmission to a subordinate court mandatory?

No. The statutory wording is "may", giving the High Court discretion to transmit the order.

What is the equivalent provision under the 2025 Act?

Section 370 of the Income-tax Act, 2025 corresponds to Section 266 of the 1961 Act.

Official legal sources

Updated: 27 October 2026. This article is for general legal information. Verify the governing law and court rules before filing an execution petition.